Does your home need updating to sell, but you don't want to do the renovation?  We have cash buyers who will buy your home!

January 8, 2020

The shortage of homes for sale is getting much worse, even in luxury

Like it? Share it!
The shortage of homes for sale is getting much worse, even in luxury 1

December is not the most popular time to list a home for sale historically, but this past December it was particularly unpopular.

The supply of homes for sale was 12% lower compared with December 2018, according to realtor.com. The decline was much steeper than the 9.5% annual drop in November. Buyer demand is so strong, that whatever is on the market is going quickly.

The shortage of homes for sale is worst on the low end of the market, but the supply drain is actually accelerating across all price tiers, including the most expensive homes.

In December, the supply of entry-level homes, those priced under $200,000, fell 18.1% annually, a larger drop than the 16.5% decline in November. In the midrange, the supply of homes priced between $200,000 and $750,000, dropped 10.2% annually, compared with November's decline of 7.4%. At the top, the number of homes for sale priced over $1 million fell 4.4%, compared with November's 2% decline.

"The market is struggling with a large housing undersupply just as 4.8 million millennials are reaching 30-years of age in 2020, a prime age for many to purchase their first home," wrote George Ratiu, realtor.com senior economist, in a release. "The significant inventory drop we saw in December is a harbinger of the continuing imbalance expected to plague this year's markets, as the number of homes for sale are poised to reach historically low levels."

The overall supply drop in December represents a loss of about 155,000 listings compared with the previous December, and the number of new listings is also shrinking. The reasons for that are manifold: Older Americans are increasingly choosing to age in place, rather than sell their large homes. High prices are keeping potential move-up buyers from listing their properties. And, perhaps the most dramatic change in the market over the last decade, investors have turned about 5 million homes into single-family rentals. Those homes are largely out of the for-sale pool now.

Of course all real estate is local, and some markets are seeing supply drop more dramatically than others. San Jose, California, Seattle and San Francisco all had inventory declines of more than 30% in December. Just three large markets, San Antonio, Minneapolis-St. Paul and Las Vegas saw their inventory of homes for sale increase.

Short supply signals higher prices ahead, especially as demand picks up in the new year. Mortgage rates are still very low, giving buyers more purchasing power and fueling that demand further. After shrinking for much of last year, price gains began growing again last fall and will likely continue until more supply hits the market.

The nation's homebuilders will help some, as they ramp up production, but it is unlikely to be enough. New construction also comes at a price premium to existing homes. Builders are starting to pivot to lower-priced products, but the bulk of building continues to be in the move-up and higher end of the market.

Original article at: https://www.cnbc.com/2020/01/08/the-shortage-of-homes-for-sale-is-getting-much-worse-even-in-luxury.html

Listings

Active Listings
UNDER CONTRACT - 2186 Aspenpark, Thousand Oaks, CA

3+2 in the "Lang Ranch Elementary School" district
Click For More Details
Coming Soon
400 Whitegate Road, Thousand Oaks, CA

5+4 VIEW HOME with 1+1 Guest House and Pool in Thousand Oaks
Follow the progress and get on the waiting list
Recent Sales
SOLD! 14284 Clemson St., Moorpark, CA

3+3 VIEW HOME in the highly desired "Varsity Park Estates" neighborhood
Click for More Details
SOLD! 1449 La Jolla Dr., Thousand Oaks

Newly remodeled 4 bedroom home in the "Modern Farmhouse" style.
Click for More Details
711 Bluebonnet Ct. in Thousand Oaks

4+2 Remodeled Single Story Pool Home
Click for More Details
3490 Pine View Dr., Simi Valley
SOLD! Simi Valley 4+3 Remodeled Single Story Home with Gated RV! 3490 Pine View Dr. in Simi Valley
4+3 Remodeled Single Story Home with 15,000+sf lot and gated & paved RV parking!
Click Here for more details
30666 Passageway Pl., Agoura Hills

"Lake Lindero" One of a Kind View Home! 4+3 Two Story home with INCREDIBLE Lake Views!
Click Here for more photos of this amazing view!
Need to sell your home fast for cash?  We have fast hassle free cash offers for your home

Recent Posts

Huggins Homes

A Boutique Agency With Over 30 Years Experience Providing Personalized Consulting And Comprehensive Real Estate Services To Buyers And Sellers.
© Copyright 2015 forward - All Rights Reserved
For media inquiries about the Ventura County real estate market, real estate investing or house flipping, please contact Ryan Huggins at 805.905.4000
805.905.3000Ron@HugginsHomes.com
805.905.4000Ryan@HugginsHomes.com
envelopesmartphone